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Consider a hedge fund with $200 million at the start of the year. The benchmark S\&P 500 Index was up 16.5% during the same period. The gross return on assets is 21%, and the expense ratio is 2%. For each 1% above the benchmark return, the fund managers receive a 1% incentive bonus. What was the management cost for the year? $4,877,000 $4,900,000 $5,929,000 $6,446,000